New Mortgage after BK..foreclosure filed

[katt3344]

We filed BK Nov 2008, in FL, and included the house. Discharged end of March 2009. We got a pre-approval letter from a lender approving us for a new mortgage and have put money down to have a house built. Stopped paying in Nov 2010 and mortgage co filed for foreclosure July 2011. At this point we are really just trying to stall beacuse the new lender said that so long as we don't have a foreclosure, short sale, or deed ILO before we close on the new house, we are good to go. However, my husband is concerned that even if we are able to hold off the court issuing a summary judgement before closing (which is scheduled for end of March 2012), that if the new lender SEES the foreclosure has been filed, they will deny us the loan. I really need some sound advice here because if we end up NOT being able to get the new house, we would want to try to stay here. Part of the process for stalling was filing for the RMFM program. So now would be the time for us to try to work it out. But I would really rather move. This house is just too small for 4 growing children.

[justbroke]

It's a tough spot and there aren't a lot of answers. You were lucky to find a lender that would underwrite a mortgage when you are behind on your current mortgage; even though your existing mortgage "note" was discharged in the bankruptcy. I can't tell you what the lender/underwriter is going to do if they find the lis pendens. They probably are only looking at the public record, but the lis pendens itself is a public record; only it's not reported to the credit bureaus.

Why is your closing date 5 months away? Did you do some sort of Lease Option?

[AngelinaCatHub]

It's a tough spot and there aren't a lot of answers. You were lucky to find a lender that would underwrite a mortgage when you are behind on your current mortgage; even though your existing mortgage "note" was discharged in the bankruptcy. I can't tell you what the lender/underwriter is going to do if they find the lis pendens. They probably are only looking at the public record, but the lis pendens itself is a public record; only it's not reported to the credit bureaus.

Why is your closing date 5 months away? Did you do some sort of Lease Option?

The OP said the house was to be built. With all of the foreclosure bargains around our area, I cannot fathom new construction. I note that about 20 miles from us, there is a 200 lot subdivision with new streets, city water, underground utilities, and 12 houses. One lived in, one was, the other ten built except for the colors of tile and carpets. (Often done as spec houses so the owner can pick). Otherwise I see a fortune in lost labor and materials. I hope the loan goes through. A new house sure would help the new start. 'Hub

[katt3344]

We have to wait till next. March because of the new FHA guidelines you have to be 3yrs post discharge to qualify for a new FHA mortgage. And its costing us the same to get a brand new house as some of these foreclosures.